Latest / The Paul Barron Crypto Show / JP Morgan Vault Launches with 0.0% APY?🤡CLARITY FINAL Deadline!🚨Jito Labs Rebecca Rettig INTERVIEW🔥

Transcript

JP Morgan Vault Launches with 0.0% APY?🤡CLARITY FINAL Deadline!🚨Jito Labs Rebecca Rettig INTERVIEW🔥 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Let's go into a clarity rug pool that could be
• 0:02
  Speaker 1: happening right now as we speak. We wanted to get
• 0:06
  Speaker 1: an expert on this topic in to help you guys
• 0:08
  Speaker 1: understand what's happening, and let's just get right into it.
• 0:12
  Speaker 1: I want to, of course, bring in Rebecca Reddick, who
• 0:14
  Speaker 1: is coming in from Gito Labs. Rebecca, you've been on
• 0:17
  Speaker 1: the show before. Thanks for coming in. We appreciate it.
• 0:19
  Speaker 2: Thanks for having me. It's good to be here always.
• 0:21
  Speaker 1: All right, So, a couple of things that have to
• 0:24
  Speaker 1: be addressed. First of all, with that last little interview
• 0:28
  Speaker 1: that you did with an attempt to try to get
• 0:32
  Speaker 1: some answers, my question is did anything come of it?
• 0:36
  Speaker 1: And especially around I think we showed it a little bit.
• 0:38
  Speaker 1: It was in reference to the lady that had the
• 0:41
  Speaker 1: eye of Sauron in the back when we were kind
• 0:43
  Speaker 1: of talking about this. Did anything come from that? No.
• 0:47
  Speaker 2: I think what was interesting was that this has become
• 0:50
  Speaker 2: politicized in many ways and that there is information that's
• 0:54
  Speaker 2: swirling around DC that may not be entirely accurate. So
• 1:00
  Speaker 2: I think that's what was taken away from there more
• 1:03
  Speaker 2: than anything else.
• 1:05
  Speaker 1: Do you feel like people around the idea of what's
• 1:09
  Speaker 1: happening with clarity really understand it or you think it's
• 1:11
  Speaker 1: only an inside DC situation.
• 1:14
  Speaker 2: So the bill itself is pretty complicated and hard to understand.
• 1:18
  Speaker 2: It's hundreds of pages, and especially now where the Senate
• 1:21
  Speaker 2: agg side, which oversees the CFTC, and the Senate Banking side,
• 1:25
  Speaker 2: which sees the SEC and Treasury have to combine. This
• 1:27
  Speaker 2: is a monster of a bill, right, like a very
• 1:30
  Speaker 2: much a Dodd Frank like huge bill. So people are
• 1:34
  Speaker 2: just taking certain things that are told to them at
• 1:36
  Speaker 2: face value. And otherwise, people who've been working on this
• 1:39
  Speaker 2: bill for months, years, whatever it may be, understand it
• 1:43
  Speaker 2: very well. The agency is understand that. But I think
• 1:46
  Speaker 2: if you're coming in from the outside and someone's just
• 1:49
  Speaker 2: told you this bill does X, Y and z, people
• 1:51
  Speaker 2: will just listen to it without necessarily getting into the text.
• 1:54
  Speaker 1: First of all, do you feel like this August seventh
• 1:57
  Speaker 1: is just another false deadline? I mean, how many deadlin
• 2:00
  Speaker 1: have we had so far on this In terms of clarity,
• 2:02
  Speaker 1: people who.
• 2:03
  Speaker 2: Are in DC get a lot of In two weeks
• 2:05
  Speaker 2: it'll be on the floor, and that's been happening for
• 2:07
  Speaker 2: a long time. So the in two weeks is a
• 2:09
  Speaker 2: definitely a long running joke for crypto people. I do
• 2:14
  Speaker 2: think that end of July very early August is a
• 2:18
  Speaker 2: drop dead date. And I think the spiciest thing that
• 2:21
  Speaker 2: I've been thinking but not saying out loud, is it's
• 2:24
  Speaker 2: a real mistake for the Dems not to think about
• 2:26
  Speaker 2: passing this bill. Crypto's not going back in the bottle, right,
• 2:30
  Speaker 2: Genie's out, it's here. And what we used to say,
• 2:33
  Speaker 2: you know when people were raising concerns during the last administration,
• 2:36
  Speaker 2: Oh well, crypto's not really intertwined with the traditional financial sector,
• 2:40
  Speaker 2: but cryptos in its trad FI era right now, right,
• 2:44
  Speaker 2: I think we're going to talk about some of the
• 2:45
  Speaker 2: ways that banks and other financial institutions are really combining
• 2:49
  Speaker 2: with blockchain and crypto rails, and so you should want
• 2:53
  Speaker 2: to have a very robust, pretty restrictive, very unique crypto
• 2:58
  Speaker 2: bill in place as we continue to move forward. So
• 3:01
  Speaker 2: it's a big mistake not to pass this bill.
• 3:03
  Speaker 1: Well, and to your point, we're going to get into
• 3:05
  Speaker 1: this today because there's some moves in MICA within the EU. Obviously,
• 3:09
  Speaker 1: there's also moves in traditional finance that they're just kind of, hey,
• 3:13
  Speaker 1: we're going to go ahead and start our plans here
• 3:15
  Speaker 1: and continue on down this track. But you look at
• 3:18
  Speaker 1: a couple of key dates here, this is entering a
• 3:21
  Speaker 1: pivotal stretch. I would agree. Right here, you've got the
• 3:24
  Speaker 1: July thirteenth through seventeenth, this is the center procedural final
• 3:27
  Speaker 1: four floats, and then the twenty seventh through August seventh,
• 3:30
  Speaker 1: if approved. That would be kind of the lineup if
• 3:34
  Speaker 1: this were to get done. If you were giving it
• 3:37
  Speaker 1: a betting number right now, a poly market number, where
• 3:40
  Speaker 1: would you place it maybe.
• 3:43
  Speaker 2: Thirty five forty percent. I think if we get clarity
• 3:46
  Speaker 2: no pun intended on ethics, and if oh, look at
• 3:50
  Speaker 2: look at it, I'm pretty close.
• 3:51
  Speaker 1: To pretty close.
• 3:53
  Speaker 2: I don't even check. I think if we get a
• 3:55
  Speaker 2: deal on ethics, everything else is going to work itself out.
• 3:58
  Speaker 2: I think that's the thing people care about the most.
• 4:00
  Speaker 1: Yeah, I think the ethics issue is going to be
• 4:02
  Speaker 1: the one that the Democrats hang their hat on pretty much.
• 4:05
  Speaker 1: And of course, with all this stuff that's been in
• 4:06
  Speaker 1: the news and headlines recently, not only about the administration
• 4:11
  Speaker 1: but also just Trump and his family, has kind of
• 4:14
  Speaker 1: put this into a position. This was an interesting headline.
• 4:18
  Speaker 1: Mitch McConnell's absence is now putting the Trump's Pentagon budget
• 4:22
  Speaker 1: boost in doubt. So my question, does McConnell now hold
• 4:27
  Speaker 1: the keys to maybe getting this through? What do you think?
• 4:30
  Speaker 2: I don't think so for Mitch McConnell, But I think
• 4:34
  Speaker 2: there are others, both on the Republican and the Democratic side,
• 4:37
  Speaker 2: who we don't hear about as much because they haven't
• 4:40
  Speaker 2: just been vocal or aren't on the committees of jurisdiction,
• 4:43
  Speaker 2: who do hold keys. And there is a lot of
• 4:46
  Speaker 2: work in DC to make sure people understand the bill
• 4:48
  Speaker 2: and can get on board with it.
• 4:49
  Speaker 1: Who do you think is the most important senator right now?
• 4:53
  Speaker 1: That would be pivotal.
• 4:56
  Speaker 2: Making sure Senator Warner feels really good about the directction
• 5:00
  Speaker 2: of the bill is very important from a Democrat side.
• 5:03
  Speaker 1: All right, so Senator Warner, there you go. That's a
• 5:05
  Speaker 1: big one. Let's talk a little bit about the sec
• 5:08
  Speaker 1: safe harbor. What will this practically mean overall and who
• 5:12
  Speaker 1: would benefit from this? This is just a little bit
• 5:14
  Speaker 1: of a breakdown. The proposal was early this month. This
• 5:18
  Speaker 1: all changes maybe the whole idea around this. So how
• 5:23
  Speaker 1: does this affect what's going on right now?
• 5:25
  Speaker 2: Yeah? So yesterday, the SEC put out its number of
• 5:30
  Speaker 2: priorities for the rest of what it's going to work
• 5:32
  Speaker 2: on for twenty twenty six, and there were three big
• 5:34
  Speaker 2: categories that related to crypto assets, and one also about
• 5:39
  Speaker 2: Rule one forty four, which is hender which tokens were
• 5:42
  Speaker 2: sold for a very long time, one of which definitely
• 5:45
  Speaker 2: looked One of the other priorities definitely looked like it
• 5:47
  Speaker 2: was going to be the innovation exemption that we've been
• 5:49
  Speaker 2: waiting for on token is securities. So I do think
• 5:53
  Speaker 2: that it'll be very interesting to see what comes out
• 5:55
  Speaker 2: from the SEC in the rest of the year. As
• 5:57
  Speaker 2: I'm sure someone has told you on this show. Soh
• 6:00
  Speaker 2: they've been asked to hold back the innovation exemption until
• 6:04
  Speaker 2: we know what's going to happen with clarity because they
• 6:07
  Speaker 2: don't want Yeah, they don't want anything coming out that
• 6:11
  Speaker 2: deals with crypto, that may change that specifically deals with crypto. Right,
• 6:14
  Speaker 2: we can say, well, the purpse guidance from the CFTC
• 6:17
  Speaker 2: and the prediction market guidance seems tangential on crypto, but
• 6:21
  Speaker 2: obviously the innovation exemption is directly relevant to crypto, and
• 6:24
  Speaker 2: so they haven't wanted anything to come out from the
• 6:26
  Speaker 2: sec that might tilt where people are on clarity yet.
• 6:30
  Speaker 1: Well, and this is going to have an effect I
• 6:32
  Speaker 1: think on how projects, companies, all sorts of I think
• 6:37
  Speaker 1: innovators in the space, how they're going to play this
• 6:40
  Speaker 1: whole concept between the concept around the equity debate, because
• 6:44
  Speaker 1: you've got some projects out there clearly if you think
• 6:48
  Speaker 1: about UNISWAP and others, that could play into this, and
• 6:51
  Speaker 1: most likely we're going to see other projects shifting into
• 6:55
  Speaker 1: this as they start to build more. I want to
• 6:57
  Speaker 1: play a clip for you because this was Dragonfly responding
• 7:01
  Speaker 1: to an equity debate, which we think is in the
• 7:04
  Speaker 1: midst of starting to happen right now. Take a look.
• 7:06
  Speaker 3: We led a sixty five million dollar investment into Venice
• 7:10
  Speaker 3: in which we bought equity as well as exposure to VVV,
• 7:13
  Speaker 3: which is Venice's primary token. Venice is nothing like UNISWAP.
• 7:18
  Speaker 3: Venice is not a protocol. Venice is not an on
• 7:20
  Speaker 3: chain product. VVV is not a governance token, it's not
• 7:23
  Speaker 3: an ownership token. It has never been that VVV is
• 7:26
  Speaker 3: secretly equity wink wink. No okay, no, so okay, that
• 7:33
  Speaker 3: might make sense. We wanted exposure to VVV. We are
• 7:37
  Speaker 3: aligned with VVV holders. But it's not equity. It's never
• 7:41
  Speaker 3: been equity. It's not a governance token. It is nothing
• 7:43
  Speaker 3: of the sort. Okay, if you think it is, it's
• 7:46
  Speaker 3: because you did not actually read anything. It seems like
• 7:49
  Speaker 3: a lot of people's discomfort with VVV is that they
• 7:51
  Speaker 3: think every token should be a governance token, or should
• 7:54
  Speaker 3: basically be equity.
• 7:55
  Speaker 1: Yea.
• 7:56
  Speaker 3: If you think this, then you basically object to actual
• 8:00
  Speaker 3: capital innovation in tokens, which is kind of crazy to me.
• 8:03
  Speaker 3: We believe, as dragonfly that VVV is valuable, which is
• 8:07
  Speaker 3: why it owns almost half the VVV supply.
• 8:09
  Speaker 1: This is the definition of insanity.
• 8:11
  Speaker 4: We have run this experiment not ten times, not one
• 8:13
  Speaker 4: hundred times, hundreds of thousands of times.
• 8:16
  Speaker 1: It is impossible to work.
• 8:18
  Speaker 2: It doesn't work.
• 8:19
  Speaker 1: We need to put the nail in the coffin. This
• 8:21
  Speaker 1: thing is done. Yes, all right, So as you can see,
• 8:33
  Speaker 1: and we've talked about this debate for some time, that
• 8:35
  Speaker 1: was a bit of a tone def response there. I think,
• 8:39
  Speaker 1: in general, what's your take on this? I mean, you
• 8:41
  Speaker 1: look at projects that are doing this. We're just kind
• 8:44
  Speaker 1: of showing the venice Laar zero uni swap, which is
• 8:47
  Speaker 1: equity plus token XRP equity that's ripple of course, and
• 8:52
  Speaker 1: plus token chainling token only when you consider that and
• 8:57
  Speaker 1: you look at other projects out there, even if you
• 8:59
  Speaker 1: went to something like a Klanosaur project, what's your take
• 9:02
  Speaker 1: on this? How do you see this plane out?
• 9:04
  Speaker 2: You know, I was a ancient lawyer who worked on
• 9:08
  Speaker 2: launching tokens back in twenty eighteen twenty nineteen, and some
• 9:12
  Speaker 2: of the equity token split is because of decisions way
• 9:17
  Speaker 2: back in the day like kick and Telegram that said
• 9:20
  Speaker 2: that that sacks were illegal sales of securities and so
• 9:24
  Speaker 2: you couldn't. So some of it was we you sold
• 9:28
  Speaker 2: equity along with a warrant because a warrant could be
• 9:30
  Speaker 2: exercised at a later point in time, and that cut
• 9:32
  Speaker 2: off some of the securities liability. So this is a
• 9:34
  Speaker 2: relic like the Labs Foundation split that people have of
• 9:39
  Speaker 2: some of the regulatory uncertainty that was going on, you
• 9:42
  Speaker 2: know back in the day. I actually do believe that
• 9:45
  Speaker 2: you can have an equity token split that makes sense.
• 9:47
  Speaker 2: I will say I love to see but he looked
• 9:49
  Speaker 2: like a hostage in that video, So you know, who
• 9:54
  Speaker 2: knows what he was exactly trying to convey. I think
• 9:59
  Speaker 2: that's something like a venice might be able to have
• 10:02
  Speaker 2: an equity token split. That makes sense, but ultimately, I
• 10:05
  Speaker 2: think community wise people just don't believe in that anymore.
• 10:10
  Speaker 2: And so I think that projects are going to have
• 10:13
  Speaker 2: to figure out if there's a real way to do
• 10:15
  Speaker 2: this or not, or how to get You've seen some
• 10:19
  Speaker 2: people try to get rid of their equity uniswap has.
• 10:22
  Speaker 2: You've seen some other projects sell equity to the foundations.
• 10:26
  Speaker 2: I think we're still going to see innovation around that,
• 10:27
  Speaker 2: and I agree to your point that once we see
• 10:30
  Speaker 2: some information from the SEC around how to sell tokens,
• 10:34
  Speaker 2: then they obviate the issue.
• 10:35
  Speaker 1: Do you think that's coming. Do you think the SEC
• 10:38
  Speaker 1: is prepared to issue a guideline on this.
• 10:41
  Speaker 2: I do, especially if Clarity doesn't pass.
• 10:44
  Speaker 1: Yeah, that's an interesting point too. We've talked to a
• 10:46
  Speaker 1: couple of analysts. We had a guy from Standard Chartered
• 10:49
  Speaker 1: and he made that very point, is that if Clarity
• 10:53
  Speaker 1: does not go through, the SEC and the CFTC essentially
• 10:56
  Speaker 1: are going to be on a pretty much a tirade
• 10:58
  Speaker 1: trying to put together some sort of regulatory framework that
• 11:03
  Speaker 1: would have to exist for the market to deal with
• 11:05
  Speaker 1: all this coming through. How effective do you think that's
• 11:08
  Speaker 1: going to be.
• 11:09
  Speaker 2: The SEC side will be very effective. The CFTC side
• 11:12
  Speaker 2: will be harder because of tokens themselves. Right, the underlying
• 11:15
  Speaker 2: tokens are not security. The CFTC does not have spot
• 11:18
  Speaker 2: market authority at all, and that is why clarity is
• 11:22
  Speaker 2: needed for jurisdiction for the CFTC over exchanges, over OTC desks,
• 11:29
  Speaker 2: you know, people who are actually dealing in tokens day
• 11:31
  Speaker 2: to day.
• 11:31
  Speaker 1: Should Geno provide clarity now to token holders as well? Then,
• 11:36
  Speaker 1: I mean, because that's the issue that we're dealing with,
• 11:38
  Speaker 1: how do you guys do it?
• 11:40
  Speaker 2: We have provided clarity and we're providing more, but everything
• 11:43
  Speaker 2: about the token is out there in the public. For
• 11:46
  Speaker 2: one and two, you know, we're launching a new project
• 11:49
  Speaker 2: very very soon called JTX, and fees from that trading
• 11:53
  Speaker 2: app are made clear that eighty percent are going to
• 11:56
  Speaker 2: the token and another twenty percent is going to growth.
• 12:00
  Speaker 2: Is pretty nebulous, but it is not like, oh, growth
• 12:02
  Speaker 2: that we're going to feed straight into the equity or
• 12:04
  Speaker 2: anything like that. So Gito has been very, very transparent
• 12:07
  Speaker 2: and really in front about being transparent about the token
• 12:10
  Speaker 2: and all things about the foundation too.
• 12:12
  Speaker 1: All right, we're going to talk about JTX in a second.
• 12:16
  Speaker 1: I want to go to this right here, which is
• 12:18
  Speaker 1: the EU. They are expanding the MECA rules now to tokenization. Rebecca,
• 12:23
  Speaker 1: come on, we're getting flanked here. What is this going
• 12:28
  Speaker 1: to do to the US? What do you think this
• 12:31
  Speaker 1: is going to effect effectually have any effect on the
• 12:35
  Speaker 1: lawmakers themselves? Do they even understand what's happening?
• 12:38
  Speaker 2: No, And MIKA has not changed the analysis in the
• 12:42
  Speaker 2: US so significantly. Because MICA is so stringent, it's been
• 12:46
  Speaker 2: incredibly hard for projects or for actual you know, businesses,
• 12:50
  Speaker 2: centralized actors to set up in Europe and comply. There
• 12:54
  Speaker 2: are people who are doing it, But I don't think
• 12:55
  Speaker 2: MIKA is the thing that's going to tip the scale
• 12:58
  Speaker 2: in the US to getting clarity over the line.
• 13:00
  Speaker 1: We saw Backpack obviously get approved. They're going to have
• 13:04
  Speaker 1: ridiculously low fees. What do you make of that in comparison,
• 13:09
  Speaker 1: because do you think we could see other approvals like
• 13:11
  Speaker 1: that for MEKA, Because I'm assuming everybody's going to be
• 13:13
  Speaker 1: watching that and kind of flanking it.
• 13:16
  Speaker 2: You know, the approvals that we're seeing now were initiated
• 13:19
  Speaker 2: back when Mika passed a year eighteen years ago something
• 13:22
  Speaker 2: like that, maybe two years ago. Now, I'm losing track
• 13:26
  Speaker 2: of time because you know, crypto years are like dog years,
• 13:28
  Speaker 2: So these applications were actually initiated a long time ago,
• 13:32
  Speaker 2: so you're just seeing old applications getting approved. I don't
• 13:35
  Speaker 2: think Maybe if Clarity doesn't pass, people will flame to Europe,
• 13:38
  Speaker 2: but I don't think so.
• 13:39
  Speaker 1: Do you think GITO will benefit from this backpack license.
• 13:43
  Speaker 2: In some ways but not public yet?
• 13:47
  Speaker 1: Okay, all right, there's something there. We just uncovered something.
• 13:50
  Speaker 1: All right, you guys heard it here first. I don't
• 13:52
  Speaker 1: know what we heard, but we'll see. Something's coming out
• 13:55
  Speaker 1: of you guys. So let's talk about the JTX launch,
• 13:59
  Speaker 1: which of course is a big deal. You guys have
• 14:02
  Speaker 1: some pretty amazing things going on. But will this also
• 14:05
  Speaker 1: have SEC and CFTC approval? Do you think so?
• 14:09
  Speaker 2: It's a non custodial front end, And the great part
• 14:12
  Speaker 2: about this is that the SEC has put out guidance
• 14:15
  Speaker 2: to say, non custodial front ends, even if you're trading
• 14:17
  Speaker 2: tokenized equities through them, are not brokers and you don't
• 14:20
  Speaker 2: have to register. And we have at least seen the
• 14:23
  Speaker 2: no action letter for Phantom saying that where there's something
• 14:26
  Speaker 2: non custodial that is plugging into a custodial product, that's
• 14:29
  Speaker 2: not what JTX is doing. You don't register as a broker.
• 14:33
  Speaker 2: So because it's non custodial and a front end, we
• 14:36
  Speaker 2: don't feel that we need to go to the SEC
• 14:39
  Speaker 2: and the CFTC. In terms of launching very very soon,
• 14:43
  Speaker 2: as you saw.
• 14:44
  Speaker 1: You've got a new potential SEC nominee coming in from Schumer.
• 14:49
  Speaker 1: What do you think about that. Would a new SEC
• 14:52
  Speaker 1: nominee be good or would it be a next Gensler?
• 14:54
  Speaker 1: Do you think so?
• 14:56
  Speaker 2: Schumer's C nominee is for commissioner, and Goldsmith Romero was
• 15:01
  Speaker 2: also commissioner at the CFTC in the past. She was
• 15:03
  Speaker 2: also at the FDIC. And I think having full commissions
• 15:08
  Speaker 2: built out at the SEC and the CFTC is a
• 15:11
  Speaker 2: very good thing. It has It causes intellectual dialogue and
• 15:16
  Speaker 2: agreement and really pushes transparency out in terms of what's
• 15:19
  Speaker 2: happening at the agency. So I think it'll be very
• 15:21
  Speaker 2: good there are Even if you disagree philosophically with Christy
• 15:26
  Speaker 2: Goldsmith Romero, you cannot say she is unqualified. She has
• 15:29
  Speaker 2: worked in DC for a very long time. She knows
• 15:33
  Speaker 2: how the system works better markets long time actually supported
• 15:38
  Speaker 2: Christy Goldsmith Romero and thought she was great, and they
• 15:41
  Speaker 2: now don't like one vote she made last administration relating
• 15:46
  Speaker 2: to call.
• 15:46
  Speaker 1: She yeah, so she'd be replacing Crenshaw.
• 15:51
  Speaker 2: I mean a Democratic seat is who she'd be replacing.
• 15:54
  Speaker 1: Yeah, okay, all right, So you've got all of that
• 15:57
  Speaker 1: going on, and of course we've got issues how opening
• 16:00
  Speaker 1: on the institutional side. One of the things that of
• 16:03
  Speaker 1: course we want to kind of draw attention to, and
• 16:05
  Speaker 1: that is securitize publicly traded company. We saw this didn't
• 16:10
  Speaker 1: do great on its opener out there in terms of
• 16:13
  Speaker 1: going public. How did first of all, what did you
• 16:16
  Speaker 1: think about that in terms of how the market responded
• 16:20
  Speaker 1: to it and what they were trying to do in
• 16:22
  Speaker 1: terms of conveying what securitized truly is doing great?
• 16:26
  Speaker 2: Question? You know, when we saw a Circle premiere for
• 16:30
  Speaker 2: its IPO, people were really going crazy because I think
• 16:33
  Speaker 2: people at the time on Wall Street understood stable coins.
• 16:37
  Speaker 2: I think people still don't totally understand tokenization yet and
• 16:41
  Speaker 2: how it is going to change things. But the real
• 16:43
  Speaker 2: way to understandization is it is the corollary to stable coins. Right,
• 16:48
  Speaker 2: you're going to have digitized money, you need to have
• 16:50
  Speaker 2: everything else to be digitized.
• 16:51
  Speaker 1: In the same way, right, Yeah, And I think you
• 16:54
  Speaker 1: look at the complexity when we were analyzing this. This
• 16:57
  Speaker 1: is the process that you have to kind of jump into,
• 17:00
  Speaker 1: which is you got to log in, sign up just
• 17:03
  Speaker 1: to be able to go in and trade on this
• 17:05
  Speaker 1: versus what should be I would think just a plug
• 17:07
  Speaker 1: into a wallet, but that of course changes things up
• 17:11
  Speaker 1: the complexity of how token is stocks are going to work,
• 17:16
  Speaker 1: especially with now publicly traded companies like securitize. Do you
• 17:19
  Speaker 1: think they just lose the race here with projects like
• 17:23
  Speaker 1: what you guys are going to bring to market, what
• 17:25
  Speaker 1: we've already got out there on the market in dfive.
• 17:27
  Speaker 1: What do you think?
• 17:28
  Speaker 2: Securitize has been around for a very long time, and
• 17:31
  Speaker 2: they have great partnerships and have been working on this
• 17:35
  Speaker 2: concept for a long time. But I think what happens
• 17:37
  Speaker 2: with tokenization remains to be seen. You saw City come
• 17:40
  Speaker 2: out with their own idea about tokenization, but I still
• 17:42
  Speaker 2: think there's a lot of uncertainty about the usefulness of
• 17:45
  Speaker 2: it because the securities markets are actually pretty efficient.
• 17:48
  Speaker 1: Yeah, I think this is going to be the issue,
• 17:51
  Speaker 1: and you have to kind of consider some other potentials
• 17:54
  Speaker 1: out there that would play into this. On the institutional side,
• 17:58
  Speaker 1: you've got JP Morgan's stable coin vaults but not paying anything.
• 18:04
  Speaker 1: I don't know how that works, but I guess it
• 18:06
  Speaker 1: works with JP Morgan on a zero percent apy. I
• 18:13
  Speaker 1: don't know. This just seems like it's kind of Johnny
• 18:16
  Speaker 1: cum lately. There's already all these products and services out there,
• 18:19
  Speaker 1: especially in the vault product that's doing so much better
• 18:23
  Speaker 1: in this how do they compete?
• 18:25
  Speaker 2: I mean, GP Morgan has loved an experiment since twenty
• 18:28
  Speaker 2: twenty where they did experiments on UNISWAP and with the
• 18:32
  Speaker 2: Singapore Monetary Authority and things like that. So this seems
• 18:36
  Speaker 2: like another JP Morgan experiment. And I think they've had
• 18:41
  Speaker 2: some schizophrenia on Jamie Dining hating it. There are people
• 18:45
  Speaker 2: working on this loving it. So this is another JP
• 18:47
  Speaker 2: Morgan experiment and let's just see what happens.
• 18:50
  Speaker 1: We'll see what happens. I think this will be a
• 18:53
  Speaker 1: bad one. You had some news come out of Judge Torres,
• 18:57
  Speaker 1: Remember Judge Torres from the Ripple case. And this is
• 19:01
  Speaker 1: in reference to Calshi, which is denied pretty much, this
• 19:06
  Speaker 1: preliminary injunction that essentially would make prediction markets somewhat illegal.
• 19:13
  Speaker 1: What do you think is going on here?
• 19:15
  Speaker 2: This is just an extension of the confusion around the
• 19:19
  Speaker 2: around the country for who actually has jurisdiction over prediction markets.
• 19:24
  Speaker 2: Basically when it comes to sports. We've seen the Third Circuit,
• 19:28
  Speaker 2: so New Jersey right next to New York say the
• 19:31
  Speaker 2: opposite that theft that the CEA does preem state gambling laws.
• 19:35
  Speaker 2: And you've seen the Ninth Circuit come out the way
• 19:37
  Speaker 2: that Judge Torus did. So this is just the unquestionably
• 19:40
  Speaker 2: going to the Supreme Court, and it's just a matter of.
• 19:42
  Speaker 1: Okay, okay, so this is going so, I mean, Seelig
• 19:46
  Speaker 1: has been very vocal on this. He believes all this
• 19:48
  Speaker 1: falls into the CFTC's bailiwick. So right now, with what
• 19:53
  Speaker 1: you're seeing in terms of the state fight back, what
• 19:56
  Speaker 1: you're seeing coming out of the CFTC, where do you
• 19:58
  Speaker 1: think this land you're an attorney, how do you think
• 20:01
  Speaker 1: this ends up?
• 20:03
  Speaker 2: I do actually think that this Supreme Court will say
• 20:06
  Speaker 2: that the CFTC has full jurisdiction over prediction markets, which
• 20:11
  Speaker 2: they do under the Unity Exchange Act. I think they
• 20:14
  Speaker 2: might put some contours or circumscription around the sports contracts
• 20:20
  Speaker 2: and some of that, but ultimately I think this Supreme
• 20:23
  Speaker 2: Court rules in favor of the CFTC.
• 20:26
  Speaker 1: Even with that, you still have companies like Google, which
• 20:30
  Speaker 1: this just came out, they're banning prediction market extensions. Doesn't
• 20:35
  Speaker 1: that kind of give a bad narrative overall for the
• 20:38
  Speaker 1: market or do you think this is preempting something because
• 20:41
  Speaker 1: they think maybe it's going to go the other way.
• 20:43
  Speaker 2: I can't tell what this Google ban is actually about.
• 20:47
  Speaker 2: Quite frankly, I think they're probably protecting themselves, and I
• 20:50
  Speaker 2: think some of this may actually have to do more
• 20:54
  Speaker 2: about data collection and those types of things, rather than
• 20:58
  Speaker 2: getting deep into the weeds on state versus federal.
• 21:02
  Speaker 1: Okay, all right, Rebecca, I have a clip here. This
• 21:06
  Speaker 1: is going at well. It talks a little bit about
• 21:09
  Speaker 1: Solana and did they just kill kind of this high
• 21:12
  Speaker 1: idea of casino monopoly. Let me play this for you,
• 21:15
  Speaker 1: and I want to get your attention or your response
• 21:17
  Speaker 1: to it.
• 21:17
  Speaker 4: Back on April fifteenth, twenty eleven, poker players called it
• 21:21
  Speaker 4: black Friday, the US government shut down the biggest online
• 21:25
  Speaker 4: poker sites overnight and player balances they were frozen instantly.
• 21:29
  Speaker 1: The largest site, full Tilt Books.
• 21:31
  Speaker 4: The site owed players three hundred ninety million dollars and
• 21:34
  Speaker 4: guess what, they only had sixty million dollars in the bank.
• 21:38
  Speaker 4: So poker players learned the FTX lesson a decade before
• 21:41
  Speaker 4: FTX existed choke point and choke point two point zero.
• 21:45
  Speaker 4: They weren't invented for Crypto. That playbook was run on
• 21:48
  Speaker 4: poker first. They couldn't ban the actual game, so what
• 21:51
  Speaker 4: they did is they went after the payment rails first.
• 21:54
  Speaker 1: I lived through this.
• 21:55
  Speaker 4: Bitcoin quickly became the easiest way to on an off
• 21:59
  Speaker 4: ramp through all of the popular gray area sites. We
• 22:02
  Speaker 4: actually needed permissionless money in order to do our jobs.
• 22:05
  Speaker 4: Now here are the actual mechanics. Buy ins in Seoul
• 22:09
  Speaker 4: are live today in Vegas, you pay the exact dollar
• 22:12
  Speaker 4: value of the buy in with zero processing fees. The
• 22:16
  Speaker 4: bigger piece comes in December. Winners can take their prize
• 22:20
  Speaker 4: settlements in stable coins on Solona near instant and accidentally
• 22:25
  Speaker 4: created Crypto's first real user base. The poker guys were
• 22:29
  Speaker 4: right and early, but now it's official.
• 22:32
  Speaker 1: So what do you think, does Slona just kill the
• 22:34
  Speaker 1: casino monopoly.
• 22:35
  Speaker 2: I don't think so. I think there's going to be
• 22:37
  Speaker 2: a long history around what we're going to see in
• 22:40
  Speaker 2: the past and what we're going to see in the
• 22:41
  Speaker 2: future around gambling. But the gambling almost are very, very strict,
• 22:45
  Speaker 2: so there's not a real way around them, honestly.
• 22:48
  Speaker 1: Yeah, However, you know, smart traders, just like smart gamblers,
• 22:54
  Speaker 1: figure out interesting ways to do things. So think about that, guys.
• 22:58
  Speaker 1: Let's go to our lightning around with you, Rebecca. We
• 23:02
  Speaker 1: always have fun with these. First question is the Iran
• 23:06
  Speaker 1: war escalation. This, of course has paused everything minus the
• 23:10
  Speaker 1: military spending. Do you think so or no?
• 23:14
  Speaker 2: Last I heard earlier today. No, but you know, everything
• 23:18
  Speaker 2: everything in DC is very day by day, hour to hour.
• 23:21
  Speaker 1: I don't think it. I don't think it pauses. I
• 23:23
  Speaker 1: think actually there may be a little bit of kind
• 23:26
  Speaker 1: of in your boat. It's not top of mind, or
• 23:29
  Speaker 1: at least it doesn't feel like it. I'm not hearing
• 23:31
  Speaker 1: everyone yelling about it as much anymore, so that's kind
• 23:34
  Speaker 1: of intriguing. Overall, ABA's lobby has successfully defeated the crypto lobby,
• 23:40
  Speaker 1: but not the crypto lawyers disagree all right, after it fails,
• 23:47
  Speaker 1: which is what we think is where we're set up
• 23:49
  Speaker 1: for this. Right now, Clarity will be renamed to the
• 23:52
  Speaker 1: to the Bank Act to refresh finance. What do you
• 23:57
  Speaker 1: think we just have a good name for it. We
• 23:59
  Speaker 1: thought it was a good name. What do you think good?
• 24:02
  Speaker 2: I mean good, good, A plus for effort.
• 24:04
  Speaker 1: But no, but no, okay, Robinhood chain is causing every
• 24:09
  Speaker 1: company out there to launch products and ask for forgiveness later.
• 24:14
  Speaker 2: I mean, I don't think it's Robinhood chain that's causing it,
• 24:17
  Speaker 2: but yes, everybody is continuing to launch products in ways
• 24:20
  Speaker 2: where they may not or they may need to ask
• 24:23
  Speaker 2: for forgiveness later, or they don't have clarity right now.
• 24:25
  Speaker 1: Yeah, biggest banks or the bank's biggest mistake was forgetting
• 24:30
  Speaker 1: that Robinhood doesn't care.
• 24:32
  Speaker 2: That's right.
• 24:33
  Speaker 1: Agree, Yeah, I agree? I am. I'm in a I'm
• 24:37
  Speaker 1: still amazed that the banks have not figured out Robinhood yet.
• 24:41
  Speaker 1: Why do you think that is? I mean, this is
• 24:43
  Speaker 1: like a this is their second major move, third major
• 24:46
  Speaker 1: move of outflanking banks on strategy. Why are they not
• 24:50
  Speaker 1: paying attention to these guys?
• 24:52
  Speaker 2: I mean they've had a monopoly for a long time.
• 24:54
  Speaker 2: It's like the CME getting upset and suing the CFTCU
• 24:57
  Speaker 2: over purpose they were used to their monopoly.
• 25:01
  Speaker 1: Yeah, good point, plot twist, No, just no, which mcgotta
• 25:09
  Speaker 1: is alive. I'm going to pass on that one. These
• 25:11
  Speaker 1: guys are going crazy today with our lightning rounds. Will
• 25:14
  Speaker 1: lawyers continue to advocate to clients for a dual token
• 25:18
  Speaker 1: equity system for sure? Yes, all right. Betting and prediction
• 25:23
  Speaker 1: markets will be in legal hell for years to come
• 25:26
  Speaker 1: regardless if clarity goes through. Rebecca, those are great ones.
• 25:30
  Speaker 1: We will definitely have you back on to talk about
• 25:33
  Speaker 1: where this market is heading in whether or not we
• 25:35
  Speaker 1: get clarity, hopefully in the next few weeks. So thanks
• 25:38
  Speaker 1: for coming in today. We appreciate it.
• 25:39
  Speaker 2: Thanks for having me Hi.
• 25:47
  Speaker 1: If you like this video, like and subscribe, drop a
• 25:49
  Speaker 1: comment down below, and also join our free private member group.
• 25:53
  Speaker 1: The link is in the description.